How I got out of debt without going directly to bankruptcy

How I got out of debt without going directly to bankruptcy

Life isn’t so easy and if you are struggling with debt, it becomes harsh to survive. Quitting is easy, but to face the heat is the real challenge for a human being. To live a standard living and fulfill our objectives, we look for unsecured loans such as personal loans. Another attractive solution is the credit cards that allow us to purchase goods on credit and pay off the bills in the next billing cycle. But if you are unable to pay the bill, the high interest rates of credit cards turn your initial debt obligations into a financial burden. The burden keeps on increasing if you once fall behind the billing cycle. The late fees charges piles up and increase your debt burden. If you are struggling to meet your financial payments and looking to get rid of them, you can apply for Individual Voluntary Agreement UK.

You have to be a resident of England, Northern Ireland or Wales to be eligible for IVA. It is a simple solution for debtors whose outstanding payments are going out of control. If you are facing serious problems of being unable to pay your creditors, debt solutions can avoid bankruptcy. IVA is a legally binding agreement drafted between the debtor and the creditors agreed on certain terms and conditions. Under this agreement, you have to make a reasonable payment every month for five to six years. The debt arrangement protects you from the creditors as they are unable to take any legal action against you. A situation of bankruptcy is quite ugly and affects your living standard and credit rating for a long time. You have to face a difficult phase where it would be difficult for you to get a bank account, job or any credit. To avoid such a situation, you must approach professional insolvency practitioners who provide you effective advice and solution to get rid of financial burden.

An insolvency practitioner can only help you if disclose every minute financial detail with your insolvency practitioner. He would analyze your current financial status and financial statements to advice the best debt solution. A meeting is arranged between your creditors and the expert insolvency practitioner on a certain date where the practitioner proposes the IVA to the creditors. The agreement would be legally enforced if 75 % or more creditors give their consent to the given terms.

As a debtor, you are liable to pay the agreed payments. Your payments and financial circumstances are reviewed by the insolvency practitioner. If there is any change in your financial status, you should approach your financial practitioner and discuss the changes. If you have honestly made the agreed payments to the creditors, you would be relieved from the remaining debt. The decision about your home and car totally depends upon the amount of financial burden that is on you. If it is extremely necessary, you may have to release your assets to make contributions to the creditors.

What are the unique benefits of IVA?

No fear from the creditors-

The creditors cannot take any action against you if they have voted for the agreement. The interest and charges that keeps on increasing get frozen and would not accumulate to increase your debt.

Avoid the situation of bankruptcy-

Bankruptcy should always be a last resort for the debtor. You can land up into serious problems and grave consequences if you go for bankruptcy. Your credit rating is badly affected for many years that gives you trouble in seeking any loan, insurance, apartments, car or anything that requires a credit check.

If you are thinking of going for an IVA solution, but doubtful how much you would have to pay and for how long, you can take the help of IVA calculator. You can use the IVA calculator to find out that whether you are eligible for an IVA or not. You have to furnish certain details such as your name, phone number, occupation, total debt, and monthly income. After scanning your details, you would be given information about how to apply for an IVA. You can be assured that the information provided is absolutely safe and would not be sold to any third parties.

Secure your assets-

IVA allows you to get a second chance in your life and live respectfully. Under an IVA, you can still hope to secure your assets such as your car and home. You can own one vehicle if the value of the vehicle is less than 5,000 pounds.  You can save your home if you release equity to collect funds for the payments.

Application for further credit-

IVA is a kind of insolvency and hence registered in online Insolvency register. The information about IVA is publicly available and used by credit agencies and creditors. The information about IVA is not usually listed in the local newspaper. After IVA, you would find difficulty in getting credit as it affects credit rating for six years. It offers you a better condition than bankruptcy in terms of applying for credit.

Free advice-

You get free advice and debt solutions from highly experienced insolvency practitioners who help you to come out of the distressed situation. Their advice is quite valuable as they understand your financial circumstances and give you suggestions for a better life. Nothing is better when you come out of all the debt problems and lead a simple life.

IVA has been adopted by many people who struggle in making repayments to the creditors. Many people have found peace of mind and security in such a solution that directly deals with the creditors and make them understand the debtor’s situation. Running away from problems is not a decision to be proud of. When you come forward, understand the ground reality and facing life as it comes is a sign of being a rational person. It is recommended that if you are unable to take the burden of debt forward anymore, you should immediately seek the help of an insolvency practitioner. Seeking a debt solution is a better situation than facing the warnings of the creditors.